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TMI Blog2014 (5) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... against an order referred to in sub-section (1) of Section 154 of the Act may be amended by the authority passing such an order in exercise of its power under sub-section (1) of Section 154 of the Act - the authority passing an order may amend that part of the order which has not been considered and decided in any proceeding by way of appeal or revision against such order – the matter of adhoc disallowance out of sundry expenses was considered and decided by CIT(A) in appellate proceedings – thus, the AO had erred in framing revision order passed u/s 154 – Decided in favour of Assessee. - I.T.A. No. 2857/AHD/2010 - - - Dated:- 24-4-2014 - Shri D. K. Tyagi, J. M. And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Shri Tushar He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered the submission made by the appellant and observation of the AO. The argument of the appellant that various courts have decided that once an order of AO is merged with the order of CIT appeal, no further rectification on that particular issue can be done is acceptable and hence the decision cited are not discussed separately. However, here the issue is not a legal issue. The issue is not an issue where there can be a debate or to opinion possible. The AO has disallowed 15% very clearly as is seen from the assessment order. In the assessment order, this issue has been discussed on page 17 and 18 of the assessment order. From para-7.3 of the assessment order on page 18, it is very clear that the AO is disallowing 15% of the administrative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has erred in law and on facts of by the case by confirming the action of Id. AO by rectifying disallowance out of welfare expenditure of Rs.73,064/-, made while passing assessment order u/s 143(3) of the Act, to Rs.7,30,641/- by virtue of provisions of S.154 of the Act. 2. The Id. CIT(A) has erred in law and on facts of case by confirming the action of Id. AO in invocation of provisions of S.154 of the Act on the disallowance out of welfare expenditure which had been considered and decided by the then Id. CIT(A) in appellate proceedings against the assessment order passed u/s 143(3) of the Act. 3. The Id. CIT(A) has further erred in law and on facts of the case by confirming the action of Id. AO by invoking provisions of S.154 on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Assessee carried the matter before CIT(A). CIT(A) vide order dated 24.12.2007 held that the disallowance of Rs. 23,064/- made by the A.O. was not warranted and accordingly directed the A.O. to delete the addition of Rs. 23,064/- made by him and accordingly the suo motu disallowance made by Assessee was upheld. He pointed to the relevant para of the order of CIT(A) placed at page 36 of the paper book. The ld. A.R. further submitted that against the order of CIT(A), Revenue preferred appeal before Hon ble Tribunal but however in the appeal, the Revenue did not challenge the disallowance of Rs. 23,064 which was deleted by CIT(A) and for which he pointed to the grounds of appeal raised before Tribunal in ITA No. 788 1216/AHD/2008 and placed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of the assessee, it is also not possible to verify each and every voucher of expenses to ascertain as to whether there were expenses of personal nature or capital nature or for the purposes of business exclusively. This fact squarely applies on the Assessing Officer also. Considering all these factors 15% of the expenses of Rs. 4749117(Administrative expenses and Rs. 121822 being the amount of expenses under the head Welfare expenses are disallowed. The disallowance is worked out to Rs. 73,064/- as against the disallowance already made by the assessee of Rs. 50,000/-. Therefore, the net addition of Rs. 23,064/- is made for want of proper control over the expenses. 8. Against the order of A.O, Assessee carried the matter befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the order of CIT(A) dated 24.12.2007 had attained finality. Section 154 of the Act provides for rectification of mistake. The relevant portion of Section 154(1A) reads as under:- Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section(1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided. 10. On reading of Section 154(1A) it is seen that it specifically provides that any matter which has not been considered and decided in any proceedings by way of appeal or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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